on the other hand once the government know what to do. they go roaming the snow doing their job properly look good in the note for people to wake up otherwise we'll just become slaves to the system who want to be treated as humans and they believe they can make a difference. the government has to change things because they don't have a choice. with greece in shambles and neighboring portugal trashed by the rating agencies spain is facing not just a financial but a deepening social crisis members of the so-called indignant marches say they want their dignity preserved but whether their calls will be heard is another issue even though. madrid. well there is more bad news for greece as well its credit score has dropped to just one notch above default following last week's second to bail bailout package or ratings giant moody's says rejecting the debt implies

substantial losses to private investors for national journalists yohan bought over it felt says the rescue package is nothing more than banks pay money to other banks . we're bailing out the banks and we wouldn't be that soft i presume with greece if there wasn't the problem of the french and the german banks not only of these two companies but of course they are the major players and if they were vulnerable to the greek situation and beat were throwing money at the banks through greece this package will certainly not help the greek economy the greek economy needs growth and since you're in the midst of a very bad recession you blige the country to cut spending to increase taxes then throwing some money at it is not the solution greece is now effectively in default because if you calculate on the net present value what private bond holders will

given you amount to a value reduction of you come to a value reduction of around twenty percent in europe we don't have a political union and we don't we certainly don't have flexible labor markets so from the beginning. there were huge weaknesses in the whole construct of the monetary union in europe and my big surprise is that it has lasted ten years before through this kind of crisis these weaknesses came to the surface all of the other side of the ocean american politicians are still tussling over how to raise the country's debt ceiling while republicans and democrats argue secretary of state hillary clinton has been trying to call nervous asian investors that they will meet next week's deadline let's talk to michael chelsea's the editor of a catholic current affairs magazine thanks very much mr giles for being on the program now both fear u.s. secretary of state and the treasury secretary are confident that a compromise will be reached and that the debt ceiling will be raised now are you

convinced. yes i think the debt ceiling will be raised so there's good and bad news the good news is there won't be a default but the bad news is on august second they'll be faced with the same problem they had on august first and that is an repayable day so how does the country going to deal with an repayable debt so they can postpone it but they still have to deal with the same problem and just a quick question there if you think it is going to be race why don't they just raise it now instead of having to wait for august second or beyond that. for political reasons each side the democrats and republicans are trying to extort some type of political benefit out of the crisis the republicans want to cut welfare benefits and the democrats want the one to blame the whole thing on the republican so it's basically political a game of chicken that's what we're seeing your political game of chicken ok now as secretary of state hillary clinton is in asia and as i mentioned earlier she has

been a trying to call the a jittery investors over there in this light doesn't america have an obligation to other countries to sort out this mess because any u.s. default will have serious consequences elsewhere and as we see investors are already watching it very closely. yes of course of course they have an obligation but you can't do the impossible and what we're now are faced what the united states is faced with is an impossible situation which means someone is going to end up with the money and someone's going to end up with without any money and so that's what we're that's what's trying going to be worked out right now what you have to realize is there are historical precedents for this. in the middle ages if the prince. didn't have his money he simply defaulted on his loan and because he had an army and the bankers did not have armies over this period of time the creditors have gained in power and so it forces the government into another mode. the

mode that was discovered at the beginning of capitalism was known as the looting and really the eighth was in the same position as the first english king instead of something is nose at the bankers the looted the church go to church property and so i think what we're going to see now is the united states going into looting mode this is what libya i think is all about the nato operations in libya mr jones if we you are very very confident that they're going to race they seem to you said that there has been that precedence in the past but when will it end though will the u.s. just keep on raising their debt ceiling every time their face. default. yes they will continue to keep raising the debt ceiling and that's just going into debt isn't it yes because the rating agencies will lower their their rating which means they will have to pay more interest which means that the interest will accumulate much faster and so they will just go faster and faster into debt ok well whatever is decided and but here you're saying that they will raise the cia who's going to pay off that massive debt no one's going to pay it off it can't be paid off so

what they're going to do is try to arrange for a month to month loans to pay off the last loan there's no way to pay this debt off so what does that mean the u.s. will just be perpetually indebted that's it. they will try to stay in perpetual in debt but i mean at some point the agencies will stop lending the money they're there rating will disappear and at that point it will take some type of drastic action which will be easier more looting or loot for example looting pension funds is what they're doing right now or they will simply have to create debase the currency to the point where they can pay it off with devalued dollars ok well thank you very much for your insight fareed mystery michael charles editor of a catholic current affairs magazine thank you. well there is still much more to come on the program including the cost of war as nato forces in afghanistan cars

and more civilian injuries we asked how much longer the alliance can justify its means as afghan anger grows. ever lethal fix from the pharmacy party reports that the russian addicts painfully killing themselves with a drug store cartel because it's cheaper than heroin. thousands of their regions gathered in the center of ours though on monday for a candlelit vigil for the victims of twin attacks that left seventy six dead people held flowers and candles to commemorate those massacred in the shooting at an island youth camp as well as the bombing of government buildings the man who has admitted the atrocities has been charged with terrorism or any close court hearing and are slow and he will be held in isolation for four weeks. pleaded not guilty saying he wanted to save europe and send a strong signal against immigration he also claimed there were two more cells in the organization he belongs to investigative journalist tony gosling. may have

already been aware of. it was interesting that the police said they never come across him before the norwegian police but i wonder very much i wonder if the secret service in norway has been watching him because it was very strange that when he was first arrested on friday the police actually called out his name to him now it was very i would be if they would have actually known as they first approached him what he was i would have thought that from the arrest point that's where the investigation would have started from this guy obviously needs to go down if that's what the jury finds and let's make sure that he's not free to roam the streets because what concerns me is some of the right wing terrorists we've had in europe over the last thirty forty years really still this is from the operation gladio and other similar operations by nato still are walking the streets. that was investigative journalist tony gosling talking to us there. are five afghan children

have been injured in an attack by a british apache helicopter they were working in a field in helmand province on saturday where u.k. forces were targeting an insurgent on a motorcycle nearby now almost fifteen hundred civilians have been killed this year which is already the deadliest since the invasion started in two thousand and one of peace activists lindsey german told me earlier that the alliance is actions prove that war isn't working i think that it will just convince more people in afghanistan the war isn't helping them but he is actually killing and injuring more and more people so isn't working isn't going to work when you have a war where the risk of growing insurgency will be all sorts of people who are victims of this and children are obviously one of the worst of the casualties the only solution to this is to say war isn't working it has there is absolutely no

justification for the nato forces to be there and that they should withdraw the troops this is now coming up to the tenth anniversary of the war and there is absolutely no question that this war is not getting better it is getting worse it is almost certain that whatever settlement eventually comes in afghanistan it will involve the taliban in some capacity nearly everybody now recognizes this so what is the point of continuing this war the point of continuing this war is because the americans and the british and their allies cannot admit defeat in the second country after what happened in iraq that is why they're there they are there in order to prop up a government that they have no real confidence in they are there in order to save their own faces they are there to protect their interests they're not there to protect the ordinary afghans and we've seen this again this week. but it was lindsey german from the stop the war coalition. for the last serbian fugitive

wanted by the u.n. war crimes tribunal has appeared in court gore on how to faces fourteen charges including crimes against humanity during the balkans war in the one nine hundred ninety s. where serbian officials hope his arrest will clear the way to e.q. membership but as firth reports many serbs remain skeptical as to whether it's worth joining at all. so far the tribe you know has indicted one hundred sixty one people and they surveys have been serbs and there's been a fair amount of criticism and certainly from the public opinion here he the hague tribunal is acting with political and not necessarily legal interest there's also a strong public opinion here that although the government very much looks to the west that people have really don't feel anymore like joining the e.u. is necessarily going to be and there's all that country's interest they only have to look to greece to italy to spain to see that joining the e.u.

membership is not the answer to the country's problems in fact in many cases it could quite potentially bring many more and yet it is something that we still see the serbian government really pushing for now a lot of people saying that really they are beholden to brussels wishes they were supported by brussels when this government was put in place they called the parliamentary elections next year and elections the year after that so certainly they're going to be using the arrests and the certainly going to be easing the candidacy for the e.u. if that ends up happening as a reason for the public to vote for them now that remain a number of obstacles in the way nonetheless one of those of course is possible now we know a lot of the member states will be pushing for serbia to acknowledge because there is independence as they have here within serbia that is extremely unpopular with the public opinion and we've had to do that for any government to

come out and make that agreement would be political suicide diana johnstone who's written extensively on the balkans war says the hague court was set up to bring only one side to justice. the tribunal that it is indeed set up may need to to back the needle brewton of the yugoslav process as being the responsibility of the syrian joint criminal enterprise i don't think there will be is more corrupt and other countries are already admitted to the e.u. but i think the thing is is this really in the benefit to the benefit of the search if you listen to what the europeans are saying they're saying up another brutal has been crossed they're not saying the less true there is saying an important hurdle and the other hurdles remain namely is that the recognition by serbia over the rip off over the problems of kosovo i think that most returned it to the group that

is in power which is the group that is backed by the united states in the european union is in fact ready to give away everything that can be given away it's only a question of how they can formulate it in order to get it has the syrian voters was balkans expert janet johnstone giving her appraisal of what will come out of the trial. a syria's government has approved a law to allow the formation of political parties other than president assad's ruling baath party opposition movements were banned when it came to power in one thousand nine hundred sixty three well it's part of a series of reforms promised by assad to try and quell months of protests against his regime meanwhile the e.u. is calling for more u.n. pressure on syria pledging to pursue its policy against him ask us for the crackdown on protesters veteran mideast analyst alan hart says western countries are prioritizing their own interests. what is just. the

interest is in getting rid of. the minority control group in the country because they are shia. the relationship with iraq. and i would assume the british and american policy that. they want syria to detach from iran is not complete. so in the strategic. hope that somehow this will lead to the end of the alawite and so the end of this year minority. to distance syria somewhat from iran. well for more on the events unfolding in syria head to our web site that's r t dot com and there's also more on the stories we're covering on the air and here's what else who discovered there today america swaps combat for porpora in iraq the groups are finally leaving but they're being replaced by private contractors ensuring the u.s.

grip with me. also getting in a lather over the prime minister as the scouts and we caught a carwash terrorists display their devotion to be there with the other cars it's not the first time young women have shown support by shouting clothes as we explain at our t.v. dot com. divers have recovered all of the bodies from the russian pleasure boat that sank in the volga river two weeks ago now out of the two hundred one people on board the ship one hundred twenty two were killed the bulgaria has been raised from the riverbed and has been towed to shallow waters where investigators can piece together the ship's final moments to discover how the tragedy happened it will then be destroyed so that no part of it can ever be used again of the bulgaria went down in just three minutes and only seventy nine people managed to escape the captains of two vessels that sailed by the sinking ship face criminal charges for passing by without stopping to help. and now more world news in brief for you this

hour the new york hotel maid accuses the former i.m.f. chief of sexually assaulting her has gone public enough to deal has told newsweek magazine that she's telling the truth about the attack in may that she wants to see . behind bars well the authorities are considering whether to drop the charges against him amid doubts over her credibility denies all the charges. well hundreds of gay couples got married in new york on sunday the american state has become the sixth and most populated to recognize same sex unions the i do is began at midnight to the. cheers and applause of family and friends meanwhile thousands condell their weddings at rallies across the state. and heroin addicts in russia are turning to a cheaper deadlier alternative and its ingredients are all too easy to get hold of the drug cocktail is known as crocodile and its main element is the painkiller

called in which the government now wants to restrict the sales up r.t. zero god never ports on the lethal narcotics increasingly used and you may find some of the images upsetting. if they call the crocodile because its users skin turns scaly before it falls off virtually unknown ten years ago it's a mixture of petrol solvents phosphorous and most importantly cheap medicines containing the painkiller code it's now become rich the second most popular drug the heroin to which the cheaper more easily available alternative injecting this lethal cocktail will rot a user's flourish in months i wouldn't three years i have been to be using it for two months i wish i never started. the governments come up with a simple solution for now i can still buy code being containing drugs of the shelf but from next year onwards i'll need a prescription to do that so that six showed up nearly half of russians use these

drugs on a regular basis the vast majority of them for completely legitimate reasons so in their fight against drugs is the government going too far as of throwing the baby out with the bathwater. coding is sold over the counter in most western countries but its sales have doubled in russia in five years and many say this is not a coincidence i think it was a mistake to start selling coding without a prescription in the first place by making it the most easily available opiate it spawned this problem yet expert opinion has been divided some believe that this doesn't do enough to tackle the social cause of addiction and punishes innocent consumers. there is no efficient system in the country for issuing prescriptions so the people who will suffer for the ordinary pensioners and housewives who need those medicines. the drugs then and the moscow suburbs we came here to ask what the users themselves think about the new law. i don't believe it would change anything

those who want to take drugs will take drugs we will buy them from the right pharmacies and if we don't get them to use something else we will always have something to inject eagar of nerve r.t. moscow and on the way we explore whether egypt's new government is nothing more than a week shuffling of the same old furniture first all the latest in business with kareena. to business here and how to thanks for joining me russia's economy looks good the g.d.p. has returned to pre-crisis levels exports and imports are reaching new highs salaries are up and deposits have doubled since the beginning of two thousand and eight. they call me is no longer in georgia in there. are so close i mean when budget

surplus and current account surplus the budget is now in deficit and my biggest concern is that the government has postponed the normal budget plan in two thousand and fifteen until then the government is still using oil revenues as normal we've heard about fifty percent over budget revenues coming from oil run in their fiscal deficit of three percent is really dangerous for muckraking all mixed ability now russia is right in their budget surplus but if oil price drops to seventy eighty it will immediately run five seven percent budget deficit. let's take a look at the markets now oil is declining for the first time in five days light sweet is trading at one thousand nine dollars a barrel and brand is one hundred seventy dollars a barrel both rises have surged to record highs as investors are seeking safe haven the very dedicated years of global exchanges gold is now trading at one thousand six hundred fourteen dollars per ounce and silver at one important dollars per

ounce now let's take a look at the us where stocks resume declines on concerns that the lawmakers will fail to raise the government's debt limit and avoid default dow jones industrial average is down point six percent and led by insurer travels costs telecommunications and consumer staples are lower on standard and poor's need to leave these industrials fairing the best among its ten is the industry groups and european markets closed mixed on monday would be put c. in the red and the dax a quarter of a percent higher bank stocks were the biggest losers in london lloyds banking group and barclays fell four percent commerzbank was down there with three and a half percent and frankfurt. here in russia markets and mixed with the r.t.s. closing in the black and i'm isaac's finishing in the red now energy majors war have led the most on lower oil prices. ross telecom was slightly better than the markets in stocks fluctuating on its own in the past couple of weeks ignoring

market trends and pulling metal was up two percent as the gold miner enjoys yet another record high price for gold. today we're seeing most financial indicators sherab aim is some past some reason ball the us debt deal with the lawmakers do not treat any agreement here so basically we see oil trade in the ground around one hundred seventy and we're also seeing major european indices a red and we'll see s. and p. futures trading minus ten points in course into the friday's close so everyone is waiting for some news about the us dept plan sexual wise to assume financials being under pressure with better bank can pretty be on to perform in the market last week we've also seen some movement no attack on a roll call there which were among the top performance in the market also russian oil majors lived across nafta lukewarm performance battleground for instance gas problem. now the wheels have started turning in the john mentioned between time

make up perelli and russian technologies they've bought a factory from the petro chemical giant civil deal is worth around two hundred million dollars the plant has capacity of seven million ties a year the partners want to move their production capacity by fifty percent through further acquisitions the joint venture is expected to earn a five hundred million euros by two thousand and fourteen to get a fifth of the russian market. well that's all from me in the business team here and are teaching us again tomorrow with more business news from russia and all the the while

. twenty years ago in the largest country.

to serve two cases of. one hundred. each began a journey. where did it take the. cultures that so much of a given to each musician the person on the mark was five months on what is the condition of the egyptian revolution as it lived up to expectations but just keep. the faith. in india oldies availability in the movie the joys the hotel rooms the violence the

gateway photo the grand imperial truant the george weston. you can a letter to the close of the show to see don't need to go and publicly and runs assume the colonel was her job as a retreat. from welcome back here's a recap of the main stories we're covering for you our spanish demonstrators are venting their fury in madrid over a soaring unemployment and the government's handling of the struggling economy the protesters accuse their leaders of being dictated to by brussels and the i.m.f. instead of focusing on the people's needs. across the atlantic now america is rushing to reassure its nervous investors that it kept the stave off an ever and approached. default. the president and legislators continue

to squabble over how to lift the fourteen trillion dollar debt limit. and over one hundred thousand people gathered in norway's capital on monday to mourn the seventy six victims of friday's atrocities the man who admits to also those bombing and the massacre at an island is charged with terrorism. and next peter lavelle's cross-talk gas debate whether egypt's revolt is one step forward two steps back that's coming up next. hungry for the full story we've got it for. the biggest issues get a human voice face to face with the news makers. and . hello and welcome to cross talk i'm peter lavelle five months on what is the

condition of the egyptian revolution as it lived up to expectations what does people's power mean there today and could the revolution be hijacked during a coming elections pleb. cross-talk what's going on in egypt now i'm joined by rula jebreal in rome she's a journalist and author of miral in london we go to now el saadawi she's a writer and political activist and often referred to as the mother of the revolution and in zurich we crossed her lorenzo but dino he is an academic and security expert who specializes in islam and political violence in europe and north america are you folks this is cross talk that means you can jump any time you want i very much encourage it through i'd like to go to you first in rome what is the condition of the revolution now is it lived up to expectations or is it going in the right direction what it's really thought.